The Cost Benefits of Using an Agency: Leave Recruitment to the Experts

The recruitment process is never easy.

Even with the help of digital platforms like SEEK and LinkedIn, finding the perfect hire often requires a significant level of commitment from the talent acquisition team and human resources department.

Not only does it take more than 40 days to fill a vacant position, but it can cost Australian businesses more than $20,000 in business resources, training, onboarding, and opportunity costs for each new hire!

Since the introduction of online job boards and social media marketing, the concept of recruitment has changed dramatically. Gone are the days of newspaper ads and word-of-mouth recommendations. In the past, businesses would handle the hiring process internally, this is because on surface level, this process appeared to be cost effective. However, businesses would often find that hiring managers would need to invest hours of their own time to the hiring process and were required to screen several applicants before finding the right cultural fit.

Even after this investment, there are no promises. A new employee is not always the right fit for the business and there is no guarantee that they will stay long-term. Which is why it’s worth investing in a team of experts who know what to look for when it comes to the recruitment process.

4 Reasons why your business should partner with Staff Australia:

1. Time Loss

According to the Australian HR institute, almost 30% of organisations feel that the recruitment process takes up too much of HR’s time. This time expense makes it difficult for human resource teams to focus on other job responsibilities. The process is lengthy, from writing job descriptions to screening resumes, to conducting interviews, then onboarding a new hire, every stage of this process requires business recourses.

During the 40 days it can take to fill a position, a business often reports a loss in productivity and revenue. By partnering with Staff Australia, our recruitment experts can take this time burden off your hands by providing your business with better placements and skilled talent.

2. The Cost of a Bad Hire

Have you ever struggled to let go of a bad hire? Choosing the wrong person to work with you and your company can be a costly mistake. The average cost of hiring the wrong person can amount to around 15-21% of the employee’s annual earnings. This includes the estimated cost of candidate onboarding, employee training, and lost productivity. According to a LinkedIn survey, 89% of recruiters admitted that the wrong hires usually lacked the soft skills to support their business, with key personality traits often taking priority over technical skills.

The team at Staff Australia is committed to understanding how potential candidates can support the needs of your business. By screening, interviewing, and following up with new hires, we are determined to minimise the costs, maximise productivity, and find a good cultural fit for your company.

3. Marketing and Onboarding Costs

Onboarding a new employee can be a significant investment, did you know that the average cost to onboard a new hire in Australia can exceed $20,000?! This estimate includes the cost of advertising the role, conducting candidate interviews, performing background checks, inducting the employee, and the time spent by the hiring manager.

We understand that hiring the wrong candidate can have a massive financial impact on your business, which is why partnering with our team of experts can give you and your company a safety net. Staff Australia specialises in the onboarding process, by using our recruitment tools, resources, and dedication, we can secure the right talent for only a fraction of the cost to internal recruiters.

4. Reduced Turnover

According to DEWR, 20% of employee turnover occurs in the first 45 days of employment, which can be a huge productivity and financial cost to business owners. At Staff Australia, we can take the induction process off your hands and kickstart the onboarding process by preparing the candidate to transition into your company’s culture with ease.

Using an internal hiring manager to onboard new staff can put significant pressure on the management team, which often leads to a rushed recruitment process. With 89% of bad hires lacking the soft skills needed for the role, it often takes time to build a strong relationship with a candidate and highlight their soft-skills, which is why staff turnover is highest in the first 6 weeks of employment. To reduce staff turnover, our team will work tirelessly to find the best cultural fit and will continue to maintain a client-candidate relationship.

Why Choose Staff Australia to Support the Industrial Workforce?

In the industrial sector, finding and retaining top talent is essential to building a strong workforce.

In Australia, several manufacturing, warehousing and distribution companies are facing a skills shortage, with 36% of businesses reporting an increased level of difficulty when searching for skilled workers in the industrial sector, such as; machine operators, forklift drivers and maintenance technicians.

Staff Australia has access to a large pool of talented and skilled candidates in manufacturing, production, logistics and transport, and warehousing. We are here to support this sector by bridging the skills gap, and providing businesses with skilled workers when, and where they need them.

Is it time to outsource your recruitment process? By partnering with Staff Australia, your company will benefit from a faster hiring process, lower staff turnover, and a more productive workforce.

The cost of a bad hire far outweighs the investment in using a recruitment agency.

References:

Murray, E. (2024) 2024 HR industry benchmark report – stay ahead of the curve, ELMO Software, viewed 18 October 2024 <https://elmosoftware.com.au/resources/research-reports/2024-hr-industry-benchmark-report>

Blanco, J. (2024) The hidden cost of poor onboarding in your business, ELMO Software. viewed 18 October 2024 <https://elmosoftware.com.au/resources/blog/the-hidden-cost-of-poor-onboarding-in-your-business>

DEWR (2022) Employing and supporting women | Onboarding, Department of Employment and Workplace Relations, viewed 18 October 2024 <https://www.dewr.gov.au/employing-and-supporting-women-your-organisation/inclusive-recruitment/onboarding>

Garland, S. (2024) Hard skills vs. Soft Skills – Examples & How to recruit, Vervoe, viewed 18 October 2024 <https://vervoe.com/hard-skills-vs-soft-skills/>

Robert Half (2023) The rising costs of a bad hire, Robert Half Australia, viewed 18 October 2024 < https://www.roberthalf.com/au/en/about/press/rising-costs-bad-hire>

Jobs and Skills Australia (2023) Current skills shortages, Jobs and Skills Australia, viewed 18 October 2024 <https://www.jobsandskills.gov.au/publications/towards-national-jobs-and-skills-roadmap-summary/current-skills-shortages>

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